Rebirth in 1989: Building a Chinese Technological Empire

Xu Huasheng was busy again, and time was spent in busyness.

At the end of February, Robertson, who had returned to the United States for a period of time, came to China again, and this time, he brought good news.

"Xu, the board of directors has agreed to our investment..."

Robertson said with a smile when he saw Xu Huasheng, which made Xu Huasheng laugh. This was indeed good news.

Sam also came, with a smile on his face. Obviously, his business was successful.

In the conference room, specific negotiations began.

After some negotiations, the entire joint venture was finally finalized.

Huasheng Group and Walmart Group established a joint venture company, jointly investing 2 billion US dollars, Walmart accounted for 51% of the shares, Huasheng Group accounted for 49% of the shares, and both parties invested in proportion.

The name of the new company was also determined, called Wosheng Group, and Walmart had already sent someone to register the trademark. The trademark is also very simple, in the shape of a silver shield, with golden WS letters arranged up and down, which is very textured.

Wosheng Group is a comprehensive company. After the establishment of Wosheng Group, a series of subsidiaries will be established. The first subsidiary is Wosheng Electric Appliances, which will establish two brands.

One is the Wosheng brand, which focuses on high-end. The other brand, Xu Huasheng, proposed to be called Robertson, which focuses on low-end.

Robertson likes these two brands very much. Especially the Robertson brand named after himself, Robertson likes it very much. Xu Huasheng directly suggested using Robertson's cartoon head as a trademark, and Robertson nodded and agreed. This is a good idea.

Everyone has vanity, and so does Robertson. He also hopes that one day in the future, his name can become a permanent glory like his father, like Ferrari and Lamborghini.

"Xu, how about we play a big one this time?"

Robertson said with a smile, which made Xu Huasheng look at Robertson curiously.

"We at Walmart are going to build exclusive areas for these two brands in all our stores, renovate them, and open them at the same time. By then, we will quickly seize the market with the advantages of our products. I believe that we will definitely attract a large number of customers to buy them, so we have to prepare enough goods. I plan to use all the 2 billion US dollars we invested to prepare goods..."

Robertson's words made Xu Huasheng's eyes widen. All stores are opened at the same time, damn, you know, Walmart now has more than 1,500 stores, which is a huge volume. So many stores are opened at the same time, this is indeed a big move. This is a sales channel that many brands dream of, but now Walmart can do it easily.

"Mr. Robertson, aren't you afraid that this product will hit your hands?"

Xu Huasheng couldn't help asking.

"What are you afraid of? It's just two billion dollars of goods. Besides, the damage is done by Wal-Mart, not Wosheng Group. This batch of goods was ordered by Wal-Mart, not Wosheng. Wal-Mart needs to pay a deposit to Wosheng in the early stage, and pay the balance directly after delivery..."

Robertson said with a smile. Hearing this, Xu Huasheng was stunned.

Looking at Robertson, Xu Huasheng couldn't help but sigh, damn, OK, you capitalists are still good at playing, you can't lose money no matter what. As long as Wosheng Group doesn't lose money, it's fine. Besides, two billion goods are nothing to Wal-Mart.

Xu Huasheng naturally wouldn't mind such a large order. For Huasheng Group, the more orders the better. Thinking of this large order, Xu Huasheng smiled happily.

"Mr. Robertson, the order is fine. We will do our best to produce it. At present, the industrial park of our Huasheng Group has been built and many equipments are in place. As long as the order is placed, the product will start to be produced. Now, I think we can talk about the price..." Xu Huasheng said with a smile, which made Robertson laugh. Price, this is the most important thing. Although Huasheng Group has a lot of shares in Wosheng Group, Huasheng is Huasheng, Wosheng is Wosheng, and Walmart is Walmart. Huasheng Group supplies goods to Wosheng Group, Wosheng Group supplies goods to Walmart Group, and Walmart Group sells products. A product needs to go through two hands before it can reach the hands of consumers. So the price is very important, not only the price that Huasheng Group gives to Wosheng Group, but also the price that Wosheng Group gives to Walmart, and the price that Walmart gives to consumers, are all very important. Xu Huasheng and Robertson negotiated the price. After some negotiations, the basic price was determined. Huasheng brand products are Wosheng brand after changing the shell, and the supply price of Huasheng brand to Wosheng brand is not too high. But even so, Huasheng Group still maintains a profit margin of 50%.

And Wosheng Group will increase the priceThirty percent of the products are supplied to Walmart Group. Walmart Group will increase the price by about 30% to 40% and sell it to customers.

The cost of Huasheng brand products is a bit high, after all, the technology is the most advanced and the materials are good. When these products pass through two hands and reach the hands of customers, the price will be even higher. However, the Wosheng brand is a high-end brand, and it makes money from rich people. As long as the product is good enough, those rich people will still pay for it.

At that time, the price of the same product of Huasheng brand may be only half or even one-third of that of Wosheng brand.

This is high-end. Xu Huasheng suddenly remembered Huawei’s words. When the company develops well. Chinese people go abroad and take two products to resell abroad, they can earn back the round-trip air tickets.

And Huasheng Group’s products hope to do the same.

The Wosheng brand is used to make big profits, while the Robertson brand is used to make small profits.

After the Xingyao brand of Huasheng Group changed its shell, it became the Robertson brand. The Xingyao brand keeps 20% profit, while the Wosheng Group takes 10% profit, and Walmart also takes about 10% profit.

After two rounds of transactions, the final product price is more than one-third cheaper than similar Japanese products.

Moreover, the Xingyao brand has a better appearance, good product quality, slightly more advanced technology, and a longer warranty. As long as consumers are not fools, they know how to choose. Small profits but quick turnover, first destroy the competitors.

After finalizing the price, Robertson and Xu Huasheng both laughed.

With such products, such pricing, and channels like Walmart. Once these products are sold on a large scale, they will definitely beat Japanese brands. As for American local brands, haha, they can't even beat Japanese brands, and they still want to compete with Wosheng, dream on.

In the United States, there are many rich people, but there are even more poor people. Otherwise, why would cheap Japanese electrical appliances and Japanese cars sell so well in the United States.

A 2 billion US dollar order, this is a huge order for the Huasheng Group.

The billion-dollar Huasheng brand and the billion-dollar Xingyao brand.

In total, Huasheng brand can earn 500 million dollars with 10 billion goods, while Xingyao brand can only earn 200 million dollars. And the Xingyao brand has more goods than Huasheng brand.

This is the difference between high-end and low-end. The low-end volume looks a lot, but the money earned is very little, while the high-end volume is small but the profit is much more.

This is under the premise that Huasheng Group has mastered the core technology. If it does not master the core technology, the core products need to be purchased from outside, and the profit is lower. It is very good if the comprehensive profit can maintain 5%.

Robertson left again, but Sam stayed.

At the airport, after Sam and Xu Huasheng sent Robertson away, the two looked at each other.

"My friend, thank you..."

Sam said with a smile, his eyes full of gratitude.